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What Is A Time To Pay Arrangement?

If your company has fallen behind in its Corporation Tax, VAT or PAYE payments due to temporary cash flow problems, but is still fundamentally viable business, you have the opportunity to ask HMRC for extra time to pay. A Time to Pay Arrangement is essentially a structured payment plan with HMRC to pay these outstanding business taxes within an agreed period of time.


How To Make A Time To Pay Arrangement

For the best chance of success, you should contact an expert insolvency practitioner to assess your case, advise you and assist you with formulating a Time To Pay Arrangement. The case that you present to HMRC needs to be rock solid for them to approve a Time To Pay Arrangement. HMRC need to be satisfied that your company can and will stick to the agreement and repay all of its taxes in full, or else they will reject the proposal.

So once you have appointed an insolvency practitioner to assist you, they will contact HMRC to inform them that they have been appointed to assist you in repaying your business tax debts. The insolvency practitioner will request that no further action is taken against your company until HMRC has received details of the Time To Pay Arrangement offer that you make.

The insolvency practitioner will then look into your company and its finances, its assets, cash flow and what you can afford to pay regularly over time. They will then discuss the options with you and decide how best to progress.

They will prepare your financial information for HMRC with a cash flow projection, profit forecasts and examples of how costs can be cut elsewhere. They will also detail the reasons behind what has gone wrong and how the situation will be improved so that you don’t fall behind in your tax payments again.

The insolvency practitioner will present you with their proposal and, with your approval, make the offer to HMRC and negotiate the Time To Pay Arrangement.

If the Time To Pay Arrangement is approved by HMRC, it will result in your company making regularly monthly payments to HMRC, via direct debit, in order to clear your outstanding business tax debt. These arrangements can be set out to pay the tax bill over the course of six months, 12 months, or sometimes longer. The amount of time HMRC will allow your company usually depends on the strength of your overall case, the company’s current financial circumstances, previous history of tax payment, and the risk that HMRC perceives your company to represent.

The key to getting a Time To Pay Arrangement approved by HMRC is to act fast, be proactive and submit a rock solid, well researched and supported proposal. You should act as soon as you see that cash flow problems may cause your tax bill to go into arrears. Don’t wait to be contacted by HMRC because your tax payment was late, as this will work against you.


More Information and Advice on Time To Pay Arrangements

We can guide you through the whole process of applying for a Time To Pay Arrangement, from assessing your business, negotiating with HMRC and putting into a place the arrangement for your business.

We have an excellent relationship with HMRC and a wealth of experience and expertise in resolving PAYE, VAT, CIS and Corporation Tax problems through Time To Pay Arrangements. When you work with us, you become our client and our aim is to represent your interests and get the very best for you.

Contact us via phone, email or live chat as soon as possible for any help, advice and guidance on Time To Pay Arrangements. We can help you to relieve the burden of tax debt and let you get on with running your business.

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